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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70515
Experience:  Over 5 years in practice
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Good afternoon i had a shop on which i fell behind with the

Resolved Question:

Good afternoon i had a shop on which i fell behind with the rent . The landlord took the shop back 18 months ago but have now trying to recover the money by court action. i had the shop for 11 years but after the first 5 the lease ran out and they never renewed. Don`t know how i stand and if they have the right to take my house plus we are now still struggling finances the company has ceased trading and most creditors have gone away are you able to help in this matter
many thanks
Mark hayne
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

Was the lease in the name of a limited company or in your name personally?

If it was in the name of a limited company, did you sign any personal guarantee?

How much are they trying to recover?
Customer: replied 3 years ago.

Hi the lease was taken out in a sole trader but after 3 years our company turned ltd


 


 

Expert:  Jo C. replied 3 years ago.
If the lease ran out six years ago and was not renewed it continues on a month by month basis and therefore you are only liable for rent up until the time you leave with an amount in respect of reasonable notice, probably three months.

If at the time of you vacated the premises the lease had not been assigned to the limited company, then you are personally liable for the shortfall of any arrears of rent.

Your house is not at risk until such time as the landlord gets a judgement against you personally and once he has a judgement against you personally he can then apply to court for a charging order to put a charge against the house. Depending on the amount that is owed and the value of the house he may be able to force a sale.

If however you live in the house with a partner or wife who has a share of the house because it is jointly owned and even more so if you have children, the chances of them forcing a sale of the house is extremely remote unless there is a very large amount of equity.

Can I clarify anything for you?
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